Tuesday, April 3, 2012

NR prices likely to pick up on supply concern


Global demand for rubber processing chemicals is forecast to increase 4.7% per year through 2015 to 1.35 million metric tonnes. Gains will be driven by continuing robust gains in the Asia/Pacific region and recovery in demand in the US, Western Europe.

The unfavourable rainfall in the rubber growing areas in the major rubber growing nations has interrupted the tapping process, eventually pulling down the global supplies, which is likely to push up natural rubber prices.

In India natural rubber imports are slowing down; tyre makers are raising purchases from domestic market as auto sales are rising. Rubber production in India peaks during October-January and starts falling from February. Drop in tapping in Kerala has tightened supplies and drop in stocks also aided the rise in natural rubber prices.

Rubber for April delivery on Tokyo Commodity Exchange closed at ¥313.5 per kg and in India’s National Multi commodity Exchange the commodity closed at `.199.70 per kg on 3rd April.

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